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06-21-2022 MeetingJune 21, 2022 A regular meeting of the Scandia City Council was held on the above date with modifications. The meeting was conducted in-person at the Scandia Community Center and over an electronic platform. All participants who joined the meeting remotely could hear each other and contribute to discussions. Mayor Christine Maefsky called the meeting to order at 7:04 p.m. Roll call was taken. The following were in attendance: Council members Heather Benson, Jerry Cusick, Steve Kronmiller, Patti Ray, and Mayor Christine Maefsky. Staff present: City Administrator Ken Cammilleri, City Attorney Chris Nelson, City Planner Evan Monson (remote), City Engineer Ryan Goodman, Fire Chief Mike Hinz, Public Works Director Charles Fischer, and City Clerk Brenda Eklund. APPROVAL OF AGENDA Mayor Maefsky announced additions/changes to the agenda: • Adding 10.a) Meisters application for an off -premises license to serve alcohol at the fastpitch tournament; reordering the audit to Agenda Item 10.b). • Adding 8.g) Sister City Committee update. • Reordering Unified Development Code discussion to follow the Consent Agenda. Ray, second by Benson, moved to approve the agenda as amended. Motion carried 5-0. LAW ENFORCEMENT REPORT A written report on May's incident and citations was in the meeting packet. Deputy Boesel provided a written report. Staff reported there will be another round of enforcement actions in the next few weeks. Mayor Maefsky said she attended the sixth -grade DARE graduation, a wonderful event with the city being commended for supporting the program. PUBLIC FORUM Scandia Good Neighbor Award — Kathy Wolfbauer Mayor Maefsky presented a Scandia Good Neighbor Proclamation to Kathy Wolfbauer, who is retiring after 17 years as the administrative assistant at Scandia Elementary. Greg Sandager, owner of Rustic Roots Winery at 20168 St Croix Trail, requested the Council consider changing the winery property from Ag Core to Rural Commercial zoning as part of the development code/zoning map update. Staff explained that the Council had earlier approved this zoning amendment to the Future Land Use map, and amending the zoning map would forgo the next step with the Met Council. CONSENT AGENDA a) Minutes 1) May 17, 2022 Regular Meeting 2) June 1, 2022 Work Session b) Treasurer's Report c) Payment of Vouchers June 21, 2022 Scandia City Council Page 2 of 11 d) Appoint Election Judges for August 9, 2022 Primary Election and November 8, 2022 General Election. Resolution No. 2022-20 e) Approving the 2022 Contract for Services with Lakes Center for Youth and Families f) Accept resignation of Volunteer Firefighter Mark Fitzgerald Ray, second by Benson, moved to approve the Consent Agenda as presented. Motion carried 5-0 by roll call vote. RECOMMENDATION TO ADOPT UNIFIED DEVELOPMENT CODE AND ZONING MAP FOR THE CITY OF SCANDIA, ORDINANCE NO. 2022-02. Jennifer Haskamp, consultant with SHC, said she was pleased to present the final full draft of the Unified Development Code (UDC) following the 1-%2 year process of updating the City's official land use ordinances. Haskamp summarized public hearing comments and Planning Commission recommendations gathered over the 2 public hearings held on the UDC, saying the draft was well received. The Planning Commission unanimously recommended approval of the UDC with changes/modifications to the first draft presented at the public open house in April, which Haskamp summarized. • Zoning Map modifications, to add a PUD overlay to subdivisions • Permitted Encroachments up to 48" with respect to sidewalks, ramps, essential services and fixed appliances • Zoning District modification to Rural Residential Neighborhood along lakeshore, with the objective to bring the smaller lots into conformance • Accessory Structure Dimensional Standards, increased number permitted and square footage proportionally to acreage. Increased exception to 2 single -story sheds, allowing one in the front setback for use as a garbage corral, bus shelter, or similar use. • Accessory Dwelling Units, increased living space from 1,000 to 1,500 square feet total floor area to accommodate a loft space. Main floor area for detached units cannot exceed 1,000 square feet. • Home Occupations section, permits event activities with proper controls in place via a CUP so as to not adversely impact neighboring properties. • Solar Array, Residential — Changed "UL listed" to "Listed". Commissioners asked staff to consider an increase to permitted ground area size, but this proposal needs more research and could be studied for a future change. The 800 square foot maximum area was retained. Administrative changes were made after Attorney Nelson's review, and other non -substantive grammatic and figure numbering changes made. Council member Kronmiller asked if accessory structures across a street was addressed. Haskamp said yes, identified only for non-contiguous parcels separated by a public right-of-way. The property is considered all collectively, with a restrictive covenant in place. Mayor Maefsky addressed the table of accessory structures dimensional standards, saying she was surprised by the increase to sizes and that it looks like an arbitrary increase. Maefsky said accessory structures were studied in the past and a decision was made for the current table. Maefsky asked what are the objective standards used to determine this? Maefsky said she is not June 21, 2022 Scandia City Council Page 3 of 11 sure that increasing number and size will solve any problems for storage, but leads to acquiring more stuff. Administrator Cammilleri explained that the Planning Commission brought up the discussion on accessory structures at their last meeting, reasoning that the current limits are too restrictive and proposed the amended changes. Mayor Maefsky said she is not ready to accept the UDC and needs more time to study the changes and recommended tabling its adoption. Maefsky, second by Ray, moved to table action on the Unified Development Code and Zoning Map to allow time to study the proposed changes. Motion carried 5-0. Staff was directed to provide a copy of the future land use map for the next discussion. PUBLIC HEARING: DISCUSSION AND CONSIDERATION OF PETITION FOR VACATION OF A PUBLIC WAY FOR PEDESTRIAN USE TERMINATING AT GOOSE LAKE. RESOLUTION NO. 2022-21 Administrator Cammilleri provided a description of the request from landowners Jim and Peggy Simpson to vacate a 20 -foot -wide pedestrian easement that runs along his property for approximately one-half mile and ends at Goose Lake. Cammilleri said the Council is tasked to consider the public benefit of the easement, defined as a pedestrian walkway, for which the City currently does not have trail rights. Cammilleri conducted the required consultation with the DNR on June 3rd; a letter was supplied with their opinion to not vacate the easement to a public water body. Cammilleri explained that this petition has been brought forward twice; the first time resulting in the Council's vote to deny the petition last November. Cammilleri's staff memo noted that the City's Comprehensive Plan provides direction to either deny or approve vacating the easement. Draft resolutions were prepared for either accepting or denying the request to vacate. Council member Benson asked how this petition is different from that voted on last fall. Cammilleri said this petition has been initiated by the sole owners of the property, in a similar form but with additional materials submitted. Mayor Maefsky opened the public hearing at 7:53 p.m. Jim Simpson, petitioner and owner of the farm at 14789 Oren Road, thanked the Council for considering this petition again after he purchased the adjacent property with a contingency of the easement to be vacated so that he can successfully operate his large -caliper tree farm, saying there is a financial contingency pending on the request to vacate. Simpson said he has been operating Max Tree Farm since 2006, growing and selling large -caliper trees nationally and locally, supporting businesses and residents. Simpson explained that the easement located directly on the west border of the current property inhibits use of the 66 acres to the east as part of his tree farm. Irrigation lines and fencing would need to cross the easement which is also hindered by a wetland. He said its unclear why it was created over a wetland, and showed video taken over the last 3 months with standing water making it unpassable as a walking trail. Dock sections have been placed illegally along parts of the pedestrian way. June 21, 2022 Scandia City Council Page 4 of 11 Simpson said he has tremendous concern of the use of snowmobiles and ATVs, documented in photos, that appear to be trespassing off the easement. Simpson noted that the City should be concerned about its liability risk. Council member Ray said she walked the easement that morning, without much difficulty through wet areas. She said some sections were muddy but she didn't walk the entire way. Simpson said dry seasonal conditions may be occurring but when wet, the only way through is to trespass on his land. Council member Cusick said if Ray didn't enter on Oren Road, she must have trespassed on private land to enter the easement. Mayor Maefsky asked why the land needs to be connected? Simpson said the ground has been farmed for years in one direction -- east to west. Long continuous rows of trees are needed, and he cannot fence around the easement to keep deer out. It would not be feasible or productive to be gated, and there are irrigation lines to run on top of the ground. Council member Kronmiller asked what's different with this petition? Simpson said he documented standing water, making the easement too wet for a pedestrian way and solved by people trespassing onto his property. Simpson said he didn't realize how wet it is, and walkers are going around it. Simpson said there appeared to be illegal use and activity occurring after the petition to vacate was brought to the City. Simpson said he invited the Council to the site in April, but no one accepted. Rachel Holtgreve, 22739 Olgilvie Avenue, said they were told last year that Simpson would not purchase Swenson's land if the easement was not vacated last year with the first petition. She said her family does lots of hiking, and have used this path about once a week since moving here 6 years ago, hiking through the woods so as not to disturb the natural setting. She said the dock pieces have been there for many years. The neighborhood has offered to remove them, but was told not to by the City. Holtgreve said the community will do what they can to preserve the easement. Bruce and Janet Swenson, 22161 Oldfield Avenue, provided a written letter and comments, and thanked the Council for listening. Swenson said he has experienced constant abuse of the walkway for years by snowmobiles, 4 -wheelers, and walkers traveling off the easement and into his fields. Swenson said his letter summarized the past history of his development, and the ballfield he invested in that the neighborhood asked to be removed. His family donated the land for Goose Lake Landing, and he sold additional land at low cost for public use. Swenson said his farming practices were done to preserve Goose Lake. In dedicating it in 2001, he did not know the easement would be a problem for a future beautiful tree farm. There are groups of people illegally trespassing and illegally clearing, and not using the easement as proposed for the public, which only a small group of people in the development are using. Swenson said if the small group opposes the change, then the City must make the easement accessible for everyone. Swenson said there is possible liability for the city to retain this, and there is no good purpose for this easement. Don Baber, 22830 Olgilvie Avenue, presented a petition with 200 signatures in opposition. Baber said the snowmobile track photo shown by Simpson was that of Tom Newell's driveway June 21, 2022 Scandia City Council Page 5 of 11 and not close to the easement. Baber said the trail needs to stay; many people in the community use it and like it. They trimmed branches last year unknowingly without permission. Baber said to keep the trail for the whole community, as this walking path allows one to visit the lake. If vacated, he would have concern for other trails as well. Marc Johannsen, 22732 Olgilvie Avenue, said this is exactly the same proposal denied 4-1 last fall, and the applicant is not presenting anything new to change your vote. Johannsen said there are many reasons to deny, as outlined in a letter to the Council — the easement was dedicated by Swenson as part of the Goose Lake Development Plat and a part of the neighborhood that they use; public land use opportunities to use paths are difficult to acquire and cities should never give them up; this is a low impact pedestrian way to get to the lake and it would be bad policy to give this up; Simpson knew of the easement when he purchased the property, is asking for the same thing and it's not reasonable to continue to ask; his land can be put to good use for both parcels, making no hardship to justify vacating; the public needs safe places to move; vacating is not in the best interest of the community at large, and would benefit only one person. Steve Hursh, Forest Lake, said he raised family in Scandia and have known Bruce and Janet Swenson for many years. He has been personally trying to help sell their land for years, a challenge since 2005. Hursh said he has seen the overgrown thicket through the easement, which is totally impassable unless trespassing. Hursh said the fact is that the easement has not been passable until last fall when illegally cleared. If starting on Oren Road, you will not be able to get through either, as there is no evidence of a beginning point and it travels through a resident's garden, and until recently has had sheds on the right-of-way. Hursh said he respects those who want to maintain a place to walk, but this easement is not passable and leads to trespassing. Hursh provided to the Council a handout of photos of the subject easement showing it overgrown, and with snowmobile tracks on the easement. Jackson Holtgreve, 22739 Olgilvie Avenue, said he has used the path for the past six years, almost weekly, walking the whole thing without trespassing by wearing boots to get to the lake. There were no other comments and Mayor Maefsky closed the public hearing at 8:48 p.m. Council member Benson said unauthorized activity is not condoned, and everyone needs to follow the rules. Benson said she heard from Simpson that it would be convenient to vacate the easement for his tree farm, but the easement would not make it impossible for him to use his land, just less convenient. Benson said this doesn't rise to the level to vacate the easement and should be retained for the public interest. Council member Ray said she agrees with the DNR not to vacate it. Children are using it, Scandia lacks trails and easements and needs to hold on to every one for the public's use. Ray said that Simpson knew of the Council's denial of last year's petition to vacate before purchasing the property. Council member Kronmiller said he sees no changes since the Council's last conversation on this, and he will keep going back to no. Kronmiller said that Simpson can use his property in a reasonable way, the City needs to make this a public trail for all to use, and is not in favor of vacating the easement. June 21, 2022 Scandia City Council Page 6 of 11 Council member Cusick said that initially Swenson's petition had many signatures from the neighborhood of those agreeing to the petition to vacate, and then suddenly they were all opposed, saying it seems like there is more going on here than being brought to the table. From the audience, Mr. Swenson said he didn't know why this was. Swenson said the petition signers in opposition as presented by Mr. Baber didn't really know what they were signing. Mr. Baber addressed signing the original petition to vacate the entire easement presented one year ago. The outlot is owned by the HOA, but only the adjacent owners were approached to ask for their signatures. The petition to vacate was discussed at their HOA meeting and led to opposition. Vacating the entire easement would have landlocked the outlot from the development. Mayor Maefsky said she researched other cities vacating easements and could not find anything helpful. The DNR, Friends of Scandia Parks and Trails, and the Council have made statements that giving up land is a very detrimental thing to do to the city as a whole. Council member Cusick questioned staff if they were ever asked to maintain the walking trail. Administrator Cammilleri answered no. Kronmiller, second by Ray moved to deny the petition to vacate as presented in Resolution No. 2022-21. Motion carried 4-1, with Cusick opposed. PARK AND RECREATION COMMITTEE Council member Ray, liaison to the PRC, reported that the art fair will be delayed for next year, volunteers to clean up Lilleskogen Park are being scheduled, and a local author will be exhibiting her book on the Lilleskogen Storywalk, and is donating book proceeds to Ukrainian refugee efforts with Sister City Mellerud, Sweden. Naming Bone Lake Park Council member Ray explained that the PRC is asking the Council to approve the name "Bone Lake Park" for the existing park on the north end of Bone Lake. A survey was conducted on the city's website garnering 62 responses: • Bone Lake Park — 18 Votes • Tomte Park — 18 Votes • Tomteskogen — 19 Votes • Other miscellaneous votes Mayor Maefsky why Tomteskogen is not being recommended when it got the most votes — other parks are given Swedish names. Council member Ray explained that the PRC felt it most familiar and identifiable to Bone Lake. Kronmiller, second by Benson, moved to name the park "Tomteskogen" as it received the most votes. Motion carried 5-0. PLANNING COMMISSION June 21, 2022 Scandia City Council Page 7 of 11 Variance to build an accessory structure within the required 75 foot setback from a Manage I wetland at 23820 Lofton Avenue North. Applicant Gary Markgraf. Resolution No. 2022-22 Planner Monson presented the recommendation from the Planning Commission to approve a variance for an accessory structure to be 36' from a wetland (75' required) and 42' from the right-of-way of a collector road (50' required) at 2382 Lofton Avenue, a 3.26 -acre parcel owned by Gary Markgraf. A wetland occupies most of the west of the property and there is a limited amount of land to build the structure, proposed to be 1,860 SF in size. The Washington Conservation District investigated the wetland boundaries and type, and did not require a delineation. A recommendation of approval with findings and conditions was presented in a resolution. Council member Ray asked staff why the applicant building such a big barn. Planner Monson stated the use is for personal storage. Ray asked where will the driveway to the barn be located. Monson explained that access to the barn will connect to the existing driveway; a new access from Lofton Avenue is not proposed. Ray asked if it will be seen from the road? Monson proposed it would be. Ray said it will be seen from Bone Lake Park; could it be shifted north? Monson said that is possible and could be discussed with the applicant. Mayor Maefsky asked about tree replacement- is this a condition, or can it be included. Monson said a condition for tree replacement could be discussed. Applicant Gary Markgraf spoke to the Council and explained that the pole barn is sized to store a pontoon, trailer and other vehicles. There is a 6-8 feet elevation change in the area to the north, closer to existing garage. The proposed site is in the most level spot. He will be removing four trees and can add more. The barn will not be visible in the summertime with the existing screening. Markgraf stated that there is an existing berm across the road which will screen the barn from the park. Council member Cusick addressed the statement from Ray that it could be visible from park, and to consider that there is a wide asphalt County road between the park and the site, saying that statement doesn't carry weight with him. The lake has houses that are visible from the water — should they be screened? A building is a building. Cusick said asking what is being stored is a personal question to ask. Council member Benson asked if a wetland delineation is being done. Administrator Cammilleri said that wetland expert Jay Riggs did not require one. Cusick, second by Kronmiller, moved to approve Resolution No. 2022-22, Approving Variances for 23820 Lofton Avenue. Motion carried 5-0. SCANDIA INTERNET ACTION COMMITTEE IAC Chair Bob Wilmers provided an update on this year's construction. A contract with Midco will be forthcoming. Internet Funding Request for 2023 Buildout Wilmers explained that the State's Border to Border grant program will be accepting grant proposals up to August 4th. The IAC made a recommendation at their June 16th meeting to take June 21, 2022 Scandia City Council Page 8 of 11 advantage of the Border to Border grant program for 2023 buildout season, to utilize the $100,000 offset by the County grant to provide a total of $432,000 for internet expansion in 2023. The IAC would like the Council to direct Midco to apply for the grant to maximize the city's opportunity to assist in the funding. Because the deadline is August 4th, Wilmers said it is imperative to put forth an application for the grant by Midco. Speakers Marc and Kim Johannsen, Don Baber, and Shaun Holtgreve addressed the Council with positive comments on being the recipients of high-speed internet on last year's buildout in their neighborhood. Council member Ray said installing fiber to the home for families and remote workers is a good investment in the community. Wilmers said there is an urgency of timing, as the state has just activated the broadband grant program after an absence for a few years. By utilizing the $ l OOK savings on this years' construction, the Committee is recommending it be added to 2023 CIP amount for the figure to put into a grant proposal. Administrator Cammilleri said it's not clear what impact this will have on other capital purchases, and advised a conservative approach. Doing so might come at the expense of not doing another project. Council member Ray said this funding must be a priority for Scandia for the quality of life here. A decision to decline the grant or pare back the project can be made if a funding match cannot be committed to. Mayor Maefsky said it is a bit worrisome that we don't know the budget outlook for next year. Council member Kronmiller said he is very committed to going forward with matching funds as the IAC asked. Fire Chief Hinz said that the CIP Committee works to prioritize projects with funds available. This CIP Committee could work with a longer -range plan so as to not make these last-minute decisions. Maefsky, second by Ray, moved to proceed forward with a letter of intent to Midco for $432,000 in city financial funds for an application to the Border to Border grant program. Motion carried 5-0. TOURISM COMMITTEE Tourism Chair Sue Dickens provided a written report and minutes from the Committee. The Committee is advising a master plan for signage. The Sherpa travel site is featuring Scandia. The garage sale in early June was successful. The Committee is working with the EDA on the holiday shopping event. ECONOMIC DEVELOPMENT AUTHORITY Council member Benson reported on the EDA's June 13th meeting. They are revamping the fagade loan program, and will bring a new version to a future council meeting. The Business Breakfast held on June 15th was down in attendance but well received June 21, 2022 Scandia City Council Page 9 of 11 WASTEWATER COMMITTEE No meeting was held in the past month. ADDITION: UPDATE ON SISTER CITY COMMITTEE Council member Ray reported that Mellerud, Sweden is also forming a Sister City committee. Special interest groups are connecting between the cities, such as the Lions Club, EDA, arts, and a car club. The committee is planning to set up a virtual meeting with Mellerud with in August. So far, the Scandia-Marine Lions Club has collected $2,500 for the Ukrainian refugees in Mellerud. Staff is working on a Sister City highway sign. BUILDING OFFICIAL The May building activity report was received from Building Official Joel Hoistad. Last month 23 permits were issued at a valuation of $1,994,852.00. FIRE DEPARTMENT Fire Chief Hinz reported on the fire department's May activity. Last month the department responded to 23 calls; 12 fire, 10 medicals, and 1 dive call. Hinz reminded the Council that the emergency declaration, instituted during Covid, is still in place. This allows for the Council to conduct meetings remotely when needed. Project updates: the roof is leaking at the seams, with an estimated repair cost of $60,000. Hinz will be presenting this project to the CIP Committee. Hinz will be making a future budget request for turnout gear costs, which will be reimbursed with a state program to buy the gear. CITY ENGINEER Engineering Updates City Engineer Goodman provided engineering updates in a written report and asked for questions. The road project on Melanie Trail has revised the schedule to begin in August. Goodman directed the Council to the Osceola bridge design concepts being researched for construction in 2026. DIRECTOR OF PUBLIC WORKS Public Works Director Charles Fischer reported on the department activities. The crew has collected over 50 trees that have fallen into the right-of-ways this year. The loader is undergoing repairs that may be reimbursable. The Community Center well system pump failed on June 7th, restored and tested safe by June 10th. A volunteer has offered his services for mowing the grounds, which is working well. Fischer said he consulted with the League and there are no liability issues. Consider quotes for Crack Sealing Road Project Fischer reported that road cracks developed on all roads during the winter but the most notable cracks were present on the roads which were paved in 2018. Public Works has estimated 21,000 linear feet of cracks must be filled to maintain the road surface and prevent further moisture from entering the road base. Four contractors provided quotes for the work which will consist of routing new cracks and filling both routed and previously filled cracks. 1: Nugent Sealcoating and Paving for $16,237.50 2: Gopher State Sealcoat Inc. for $19,599.00 3: Fahrner Asphalt Sealers for $20,000.00 June 21, 2022 Scandia City Council Page 10 of 11 4: Allied Blacktop for $20,995.00 Fischer recommended accepting the low quote from Nugent Sealing and Paving. Ray, second by Benson, moved to approve the quote from Nugent Sealing and Paving in the amount of $16,237.50. Motion carried 5-0. CITY ADMINISTRATOR Administrator Cammilleri reported on general updates. Funding originally estimated for Bliss Addition Stormwater and Water Quality Improvement Project is deficient to cover the project costs as originally intended. Cammilleri will work with the City Engineer and staff to prepare a cost estimate and a plan to fund these improvements. The Gateway Trail Project LCCMR proposal for the 2023 RFP for funding from the Environment and Natural Resources Trust Fund (ENRTF) is still being processed. LCCMR received 174 proposals; it's anticipated that LCCMR will make final selection and funding allocation decisions by August 30th On May 26th, the Minnesota DNR approved a water appropriation permit to increase Martin Marietta's (formerly Tiller) maximum water use from 20 million gallons per a year (MGY) to 30 MGY at the gravel pit. Regular monitoring of well activity and water levels will continue to be observed to monitor the effects of pumping during operations. The City's consultant will be gathering data over the next few months. Consideration of possible appointment to Minnesota Board of Soil and Water's Watershed Based Implementation Funding Convene Process Cammilleri explained that the review committee has been formed as part of BWSR to demonstrate equitable grant awards. Up to 2 municipal appointments can be made, with Woodbury making one appointment. Council took no action. ADDITION: MEISTERS TEMPORARY OFF -PREMISES LIQUOR PERMIT Scot Taylor of Meister's Bar & Grill has applied for a temporary, off -premises permit to sell beer at the fastpitch tournament, June 25-26, 2022 at the Wayne Erickson Memorial Ballfield. Maefsky, second by Benson, moved to approve the temporary, off -premises liquor permit to Meisters. Motion carried 5-0. PRESENTATION BY SCHLENNER WENNER & COMPANY ON THE 2021 AUDITED FINANCIAL STATEMENT Jon Archer, Schlenner Wenner & Company, presented the City's audit report for 2021 financials. Archer reported no out of the ordinary adjustments. Revenue was higher than budgeted by $162,192 and expenses lower than budgeted by $38,192. Archer stated he is giving an unmodified (clean) opinion on the financial standings. The Unassigned Fund Balance as a percentage of the annual budget stood at 74.9% at the end of 2021. The City's Capital assets are slightly higher, and long-time liabilities decreased as debt is being paid off. June 21, 2022 Scandia City Council Page 11 of 11 Archer stated that new accounting standards will be effective next year, but he sees no issues with the new method. Council member Kronmiller asked if he has any ideas to improve the division of duties and separation. Archer said there are good mitigation controls in place and has no specific recommendations. This is common with cities that are small -staffed and may be hard to avoid. ADJOURNMENT Benson, second by Ray, moved to adjourn the meeting. Motion carried 5-0. The meeting adjourned at 10:30 p.m. Respectfully submitted, Brenda Eklund, City Clerk